The lawyer associated with bankrupt crypto lending firm Genesis believes that the firm can sort out its customer disputes within this week. It is believed that Genesis could come out of Chapter 11 filings by late May, 2023, as reported by Cointelegraph.
According to Cointelegraph, Sean O’Neal, Genesis’ lawyer, gave his comments at a January 23 initial hearing, which happened at United States Bankruptcy Court for Southern District of New York. “Sitting here right now, I don’t think we’re going to need a mediator. I’m very much an optimist,” O’Neal said.
On the basis of information by Cointelegraph, on January 19, 2023, Genesis filed for Chapter 11 bankruptcy. Reportedly, the platform put together a restructuring plan along with an to pursue a “sale, capital raise, and/or an equitization transaction” so it could potentially “emerge under new ownership.” Judge Sean Lane gave rights to a series of “first-day” motions, standard in bankruptcy proceedings, to Genesis along with permission for payments to employees and vendors. Furthermore, Lane emphasised on Genesis not giving out customer names related to its creditors’ list, due to privacy issues. On May 19, 2023, Genesis plans to sell its assets at auction for escaping its bankruptcy concerns within four months.
Moreover, Cointelegraph noted that Genesis consists of over five billion dollars in assets and liabilities, and owes over 100,000 creditors around $3.4 billion. Reportedly, Genesis’ largest creditor is Gemini which is expected to receive a payment of around $766 million. Digital Currency Group, Genesis’ parent company, owes Genesis nearly $1.65 billion inclusive of $575 million of loans due in May, 2023, and a $1.1 promissory expected to reach maturity in 10 years.
(With insights from Cointelegraph)